Speed up settlement of claims to deceased nominee: RBI to UCBs

MUMBAI: The Reserve Bank today directed urban co-operative banks not to insist upon succession certificates from the nominees while settling claims in cases of deceased depositors to make the procedure fast.

"In case of access to balance in deposits accounts with survivor/nominee clause, UCBs were advised that while making payment to the survivor(s)/nominee of the deceased depositor, the banks should desist from insisting on production of succession certificate," RBI said in a notification to UCBs.

It further said there should be no insistence upon producing the letter of administration or probate or any bond of indemnity or surety from the survivor or the nominee irrespective of the amount standing to the credit of the deceased account holder.

RBI also said banks should fix a minimum threshold limit, for the balance in the account of the deceased depositors, up to which claims in respect of the deceased depositors could be settled without insisting on production of any documentation other than a letter of indemnity.

The central bank said it was brought to its notice that some of the branches of the UCBs were not following the simplified procedure for settlement of claims in respect of deceased depositors.

"We, therefore, advise all Urban Co-operative Banks to instruct all their branches to adhere the extant instructions on the subject to facilitate expeditious and hassle free settlement of claims on the death of a depositor," it added.